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Mexico Real Estate Becoming Major Auto Industry Destination

15 November, 2012

Much has already been written about the booming auto industry in Mexico over the last few months,but new reports by Bloomberg and the Wall Street Journal prove that this story is only beginning to unfold. According to Bloomberg,Mexico’s vehicle output is on track to reach a record number of more than 2.86 million units in 2012,and shows no signs of slowing down in the coming years.

Honda Motor Co. is currently building its first assembly plant here,Nissan Motor Co. is working to add a third factory located in Mexico real estate,Ford Motor Co. now manufactures its midsize sedans here and Audi will open its first luxury plant in Mexico by the year 2016. If that’s not enough to convince you that nation’s auto industry is growing by leaps and bounds,the Wall Street Journal reported that Toyota Motor Co. and Mazda Motor Corp. have recently agreed that Mazda will begin manufacturing cars for Toyota at its Mexico plant beginning in 2015.

“With the investment amounting to $500 million,Mazda’s Mexico plant is slated to kick off operations from fiscal year 2013 in April of next year,” the WSJ reports. “The deal will help to strengthen Toyota’s lineup in North America,[and] Mazda will also benefit from more efficient productivity and profitability.”

Mexico’s appeal stems in part from its trade agreements,which cover 44 countries and make it an attractive export platform from which auto manufacturers can easily ship cars to South America,Asia and Africa,in addition to Europe,the U.S. and Canada. In addition,Mexico’s labor force is enjoying a newfound reputation for excellent quality,according to Bloomberg,and is evolving from its decades-long role as a merely a low-cost labor destination. 

“Across a range of industries,every single company in America that I’ve talked to will tell you that either their best plant or one of their top plants is in Mexico,” Jeff Liker,an engineering professor at the University of Michigan,told Bloomberg. “They can build quality and they can deliver on time.”

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